Arab Today, arab today court decision looms in argentine debt showdown
Last Updated : GMT 11:39:24
Arab Today, arab today
Arab Today, arab today

Court decision looms in Argentine debt showdown

Arab Today, arab today

Arab Today, arab today Court decision looms in Argentine debt showdown

New York - AFP

The so-called \"vulture funds\" holding bad Argentine debt are expected to reject the government\'s latest settlement offer, potentially leaving Buenos Aires with a huge bill. The US Court of Appeals has given fund NML Capital and Aurelius, which have large numbers of Argentine bonds and oppose a debt restructuring deal, until April 22 to respond to Argentina\'s offer. The court must then decide whether or not to uphold US District Judge Thomas Griesa\'s November 21 order that Argentina immediately pay the funds $1.33 billion in capital and interests accrued since it defaulted in 2001. If the court confirms Griesa\'s ruling, Argentina could be forced back into default, unraveling a long debt restructuring effort aimed at restoring the South American country\'s access to the capital markets. Argentina\'s President Cristina Kirchner would have the option of appealing to the US Supreme Court, but there is no guarantee the case would be accepted or that Buenos Aires could continue to put off repaying the bonds. Against this complex legal background, experts see various possible scenarios if, as expected, the judgment goes against Argentina, said Gabriel Torres, an analyst with the Moody\'s ratings agency. \"For us the great issue continues to be whether Argentina will be forced to default or not,\" he said. That threat arises because Griesa not only ordered Argentina to repay \"holdouts\" like NML and Aurora but also to give equal treatment to the 92 percent of original bond holders who had previously accepted a swap for new restructured bonds. If it upholds the lower court ruling, the appeals court also must decide whether to seize Argentina\'s deposits in the Bank of New York, its paying agent to holders of the restructured bonds, in order to pay off NML and Aurora. \"The worst scenario for Argentina would be if it is told \'you have to pay everything\' and in addition the Bank of New York is entered into, and there is no possibility of appeal and it has to be settled quickly,\" said Torres. He said that would imply an interruption of payments to the bondholders who had accepted a swap. The opposite extreme would be for the court to say \"we accept Argentina\'s proposal\" and force funds to accept a swap of defaulted bonds for new ones of less value, said Torres, adding that most experts do not think that will happen. A report by the firm Shearman & Sterling, which has followed the case very closely, concludes that the court is unlikely to find the Argentine offer \"to be a sufficient basis for altering Judge Griesa\'s\" decision. \"The court has already made it quite clear that it will not \'force\' the plaintiffs to \'accept a restructuring,\'\" it said. The opinion is shared by Vladimir Werning, executive director of JPMorgan Chase, who believes the three judges will not accept the Argentine proposal, which he described as a \"carbon copy\" of its 2010 restructuring offer. \"We do not anticipate the judges to support the \'cram down\' being requested by Argentina,\" he said. Torres says there is still a chance the court will rule against the Argentine government but at the same time to avoid a default. \"The middle course would be that they rule that Argentina has to pay but that the Bank of New York does not have to participate, without which the funds could not be seized,\" he said. \"That would be positive over the short term because it would not take Argentina into a default.\" Economist Arturo Porzecanski, of American University, is much more pessimistic, telling AFP he is certain \"this is going against Argentina\" and it will include the Bank of New York. For him, the issue is how much time Buenos Aires will have to py. \"There are two scenarios,\" he said. \"One in which they probably tell Argentina that it has to pay the \'holdouts,\' but give it time to do so. \"Or, they give it a chance to appeal and then the Argentine government will kick it down the road until after elections in October,\" \"Argentina is buying time, it\'s not solving problems,\" he warned.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today court decision looms in argentine debt showdown Arab Today, arab today court decision looms in argentine debt showdown

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today court decision looms in argentine debt showdown Arab Today, arab today court decision looms in argentine debt showdown

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today US travel restrictions are still 'Muslim ban'

GMT 00:54 2017 Tuesday ,26 September

US travel restrictions are still 'Muslim ban'
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israel builds settlements 'at high rate'

GMT 01:04 2017 Tuesday ,26 September

Israel builds settlements 'at high rate'
Arab Today, arab today Saudi clerics use Twitter, textbooks

GMT 10:13 2017 Tuesday ,26 September

Saudi clerics use Twitter, textbooks
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Personality study finds fish have hidden depths

GMT 00:43 2017 Tuesday ,26 September

Personality study finds fish have hidden depths
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Botanical gardens a lifeboat

GMT 02:50 2017 Tuesday ,26 September

Botanical gardens a lifeboat
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Chevrolet's first 9-speed auto debuts

GMT 18:58 2017 Monday ,25 September

Chevrolet's first 9-speed auto debuts
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Mai Kassab happy for participating in new film

GMT 09:33 2017 Friday ,22 September

Mai Kassab happy for participating in new film
Arab Today, arab today Conditions growing dire    

GMT 09:22 2017 Monday ,25 September

Conditions growing dire    

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 16:08 2017 Monday ,25 September

'World's heaviest woman' dies

GMT 12:09 2017 Sunday ,24 September

Taxi! Transport gets an overhaul

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday